JESSICA MARTINEZ V HURON MEMORIAL HOSP
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STATE OF MICHIGAN
COURT OF APPEALS
JESSICA MARTINEZ, a Minor, by her Next Friend,
VICKIE MARTINEZ,
UNPUBLISHED
September 23, 1997
Plaintiff-Appellant,
and
BLUE CROSS BLUE SHIELD,
Intervening plaintiff,
v
HURON MEMORIAL HOSPITAL, HURON
MEMORIAL HEALTH CARE CORPORATION
d/b/a HURON MEMORIAL HOSPITAL, and T.
TSAI, M.D.,
No. 193301
Huron Circuit Court
LC No. 94-008798-NH
Defendants-Appellants
and
RONSON H. SHEA, M.D.,
Defendant.
Before: Corrigan, C.J., and Michael J. Kelly and Hoekstra, JJ.
PER CURIAM.
Plaintiffs Jessica and Vickie Martinez appeal as of right the trial court’s order denying their
motion to set aside the order granting defendants’ motion for summary disposition and to reinstate this
medical malpractice action. We affirm.
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Jessica Martinez was born in May 1978 by a procedure known as “frank breach extraction.”
The delivery was performed by Drs. Tsai and Shea at Huron Memorial Hospital, a subsidiary of Huron
Memorial Healthcare Corp. Apparently, Jessica has suffered since birth from seizure disorders and
developmental retardation. Vickie Martinez, Jessica’s mother and next friend, filed this malpractice
action against the doctors and the hospital, alleging that defendants were negligent in failing to provide
reasonable medical care during the delivery, thus causing Jessica’s injuries. The trial court granted all
defendants’ motions for summary disposition and to compel arbitration based on an arbitration
agreement that Vickie Martinez signed four days after Jessica’s birth, by which Vickie agreed to
arbitrate any claim or dispute arising out of the hospital stay.
Plaintiffs motioned the trial court to set aside its orders granting defendants’ motions for
summary disposition and to reinstate the case, arguing that the repeals of the Medical Malpractice
Arbitration Act (“MMAA”), MCL 600.5040 et seq.; MSA 27A.5040 et seq., and Chapter 30A of
the Insurance Code, MCL 500.3051 et seq.; MSA 13051 et seq., invalidated the arbitration
agreement. The trial court held that repeals of these statutes did not invalidate the arbitration agreement
Vickie signed, and therefore denied plaintiffs’ motion.
The sole question on appeal is whether 1993 repeals of the MMAA and the funding and
implementation provisions of Chapter 30A of the Insurance Code, see 1993 PA 78 and 1993 PA 349,
respectively, invalidated the arbitration agreement executed under the MMAA. In the consolidated
cases of Cox v Cottage Hospital Corporation and Hooten v Lathrop, ___ Mich App ___; ___
NW2d ___ (Docket Nos. 189143 and 189795, rel’d 8/19/97), a panel of this Court considered this
identical issue, stating:
Having in mind that the arbitration agreements were valid under the MMAA;
neither the statute repealing the MMAA nor the statute terminating funding for the
[arbitration administration fund] expresses a legislative intent to abrogate or invalidate
existing arbitration agreements; the repeal of the funding statute does not by implication
mandate the invalidation of all unexecuted agreements because an alternative funding
method is found in the MMAA; and the public policy of this state favors the
enforcement of valid arbitration agreements, we conclude that the agreements are
enforceable. [Id., slip op at 7.]
By the terms of Administrative Order No. 1994-4, 445 Mich xci (1994), this Court must
follow the rule of law established by the Cox and Hooten panel. Moreover, we are persuaded that the
decision reached by that panel was correct. Accordingly, we hold that the trial court did not err in
finding that the arbitration agreement was valid. Thus, the trial court did not err in granting defendants’
motions for summary disposition and to compel arbitration.
Affirmed.
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/s/ Maura D. Corrigan
/s/ Michael J. Kelly
/s/ Joel P. Hoekstra
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